ATLANTA, April 26, 2017 /PRNewswire/ -- Marine Products
Corporation (NYSE: MPX) announced its unaudited results for the
quarter ended March 31, 2017.
Marine Products is a leading manufacturer of fiberglass boats under
two brand names: Chaparral and Robalo. Chaparral's sterndrive
models include H2O Sport and Ski & Fish Boats, SSi and SSX
Sportboats, Sunesta Sportdecks and Signature Cruisers. In
addition, Chaparral manufactures SunCoast Sportdeck outboards,
Vortex Jet Boats and the Surf Series of Chaparral SSi and SSX
Sportboats and Sunesta Sportdecks. Robalo builds outboard
sport fishing boats which include center console, dual console,
walkaround cabin and Cayman bay boat models.
For the quarter ended March 31,
2017, Marine Products generated net sales of $71,040,000, an 11.6 percent increase compared to
$63,665,000 in the same period of the
prior year. The increase in net sales was primarily due to a
12.1 percent increase in unit sales as well as an increase in parts
and accessories sales, partially offset by a slight decrease in the
average selling price per boat. During the quarter the
Company generated higher unit sales among our Chaparral H2O and
Robalo models. Average selling prices decreased slightly
during the first quarter of 2017 due to model mix.
Gross profit for the quarter was $14,906,000, a 17.5 percent increase compared to
gross profit of $12,688,000 in the
same period of the prior year. Gross profit for the first
quarter increased compared to the prior year due to higher net
sales and improved production efficiencies. Gross margin
during the first quarter was 21.0 percent compared to 19.9 percent
in the first quarter of the prior year.
Operating profit for the quarter was $6,898,000, an increase of 22.2 percent compared
to $5,645,000 in the first quarter of
last year. This improvement was due to higher gross profit
partially offset by higher selling, general and administrative
expenses during the first quarter of 2017 as compared to the prior
year. Selling, general and administrative expenses increased
primarily due to expenses which vary with sales and profitability,
such as warranty expense and sales commissions. Selling,
general and administrative expenses were 11.3 percent of net sales
during the first quarter of 2017 compared to 11.1 percent during
the same period of the prior year.
Net income for the quarter ended March
31, 2017 was $5,261,000, an
increase of $1,340,000 or 34.2
percent compared to net income of $3,921,000 for the first quarter of 2016.
Diluted earnings per share were $0.15
in the first quarter of 2017, an increase of $0.05 or 50 percent compared to $0.10 diluted earnings per share in the prior
year. Diluted earnings per share during the first quarter of
2017 increased compared to the prior year due to higher net income
as well as a lower share count resulting from the tender offer
completed during the fourth quarter of 2016.
Marine Products recorded an income tax provision of $1.7 million during the first quarter compared to
a provision of $1.8 million for the
first quarter of prior year. The 2017 provision reflects a
beneficial discrete adjustment of $580
thousand related to the required adoption of an accounting
pronouncement in the quarter. The amendments in the
pronouncement require that excess tax benefits and deficiencies
relating to share-based payment awards be recognized as a component
of income tax expense rather than stockholders' equity as in prior
periods.
Richard A. Hubbell, Marine
Products' President and Chief Executive Officer stated, "Our first
quarter 2017 financial results reflect the beginning of another
strong retail selling season. Our Robalo outboard sport
fishing boats continued to sell well, especially the Robalo 302,
the Robalo 246 and our new Robalo 200 ES which features extra
seating. In addition, our Chaparral H2O models generated
higher sales, and we began to sell some of our Chaparral models
with the new Surf Series option.
At the end of the first quarter of 2017, our order backlog and
dealer inventory levels were higher than at this time last year, as
we and our dealers prepare for the remainder of the 2017 retail
selling season," concluded Hubbell.
Marine Products Corporation will hold a conference call today,
April 26, 2017 at 8:00 a.m. Eastern Time to discuss the results for
the quarter. Interested parties may listen in by accessing a
live webcast in the investor relations section of Marine Products'
website at www.marineproductscorp.com. The live conference
call can also be accessed by calling (888) 515-2235 or (719)
457-2604 for international callers and using the conference ID
#1438020. A replay will be available in the investor
relations section of Marine Products' website beginning
approximately two hours after the call.
Marine Products Corporation (NYSE: MPX) designs, manufactures
and distributes premium-branded Chaparral sterndrive, jet drive and
outboard pleasure boats, and Robalo outboard offshore sport fishing
boats. The Company continues to diversify its product lines
through product innovation. With premium brands, a solid
capital structure, and a strong independent dealer network, Marine
Products Corporation is prepared to capitalize on opportunities to
increase its market share and to generate superior financial
performance to build long-term shareholder value. For more
information on Marine Products Corporation visit our website at
www.marineproductscorp.com.
Certain statements and information included in this press
release constitute "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements include statements that look forward in
time or express management's beliefs, expectations or hopes.
In particular, such statements include, without limitation, our
belief that the first quarter is the beginning of what will be a
strong retail selling season. These statements involve known
and unknown risks, uncertainties and other factors which may cause
the actual results, performance or achievements of Marine Products
Corporation to be materially different from any future results,
performance or achievements expressed or implied in such
forward-looking statements. These risks include possible
decreases in the level of consumer confidence and available funds
impacting discretionary spending, increased interest rates and fuel
prices, weather conditions, changes in consumer preferences,
deterioration in the quality of Marine Products' network of
independent boat dealers or availability of financing of their
inventory, and competition from other boat manufacturers and
dealers. Additional discussion of factors that could cause
the actual results to differ materially from management's
projections, forecasts, estimates and expectations is contained in
Marine Products' Form 10-K, filed with the Securities and Exchange
Commission for the year ending December 31,
2016.
For information
contact:
|
|
BEN M.
PALMER
|
JIM
LANDERS
|
Chief Financial
Officer
|
Vice President,
Corporate Finance
|
(404)
321-7910
|
(404)
321-2162
|
irdept@marineproductscorp.com
|
jlanders@marineproductscorp.com
|
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands except per
share data)
|
|
Periods ended March
31, (Unaudited)
|
|
First
Quarter
|
|
|
|
|
|
2017
|
|
|
2016
|
|
% BETTER
(WORSE)
|
|
Net
Sales
|
$
|
71,040
|
|
$
|
63,665
|
|
11.6
|
%
|
Cost of Goods
Sold
|
|
56,134
|
|
|
50,977
|
|
(10.1)
|
|
Gross
Profit
|
|
14,906
|
|
|
12,688
|
|
17.5
|
|
Selling, General and
Administrative Expenses
|
|
8,008
|
|
|
7,043
|
|
(13.7)
|
|
Operating
Profit
|
|
6,898
|
|
|
5,645
|
|
22.2
|
|
Interest
Income
|
|
51
|
|
|
92
|
|
(44.6)
|
|
Income Before Income
Taxes
|
|
6,949
|
|
|
5,737
|
|
21.1
|
|
Income Tax
Provision
|
|
1,688
|
|
|
1,816
|
|
7.0
|
|
Net
Income
|
$
|
5,261
|
|
$
|
3,921
|
|
34.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.15
|
|
$
|
0.10
|
|
50.0
|
%
|
Diluted
|
$
|
0.15
|
|
$
|
0.10
|
|
50.0
|
%
|
|
|
|
|
|
|
|
|
|
AVERAGE SHARES
OUTSTANDING
|
|
|
|
|
|
|
|
|
Basic
|
|
34,931
|
|
|
38,298
|
|
|
|
Diluted
|
|
34,931
|
|
|
38,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARINE PRODUCTS
CORPORATION AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
At March 31,
(Unaudited)
|
|
(in
thousands)
|
|
|
|
2017
|
|
|
2016
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
6,827
|
|
$
|
8,240
|
|
Marketable
securities
|
|
3,108
|
|
|
10,004
|
|
Accounts receivable,
net
|
|
8,516
|
|
|
6,215
|
|
Inventories
|
|
38,568
|
|
|
31,657
|
|
Income taxes
receivable
|
|
952
|
|
|
927
|
|
Prepaid expenses and
other current assets
|
|
1,134
|
|
|
1,349
|
|
Total current
assets
|
|
59,105
|
|
|
58,392
|
|
Property, plant and
equipment, net
|
|
13,293
|
|
|
12,754
|
|
Goodwill
|
|
3,308
|
|
|
3,308
|
|
Other intangibles,
net
|
|
465
|
|
|
465
|
|
Marketable
securities
|
|
8,066
|
|
|
30,873
|
|
Deferred income
taxes
|
|
4,981
|
|
|
3,323
|
|
Other
assets
|
|
8,877
|
|
|
10,456
|
|
Total
assets
|
$
|
98,095
|
|
$
|
119,571
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Accounts
payable
|
$
|
10,308
|
|
$
|
10,419
|
|
Accrued expenses and
other liabilities
|
|
14,471
|
|
|
11,430
|
|
Total current
liabilities
|
|
24,779
|
|
|
21,849
|
|
Long-term pension
liabilities
|
|
5,662
|
|
|
5,179
|
|
Other long-term
liabilities
|
|
62
|
|
|
72
|
|
Total
liabilities
|
|
30,503
|
|
|
27,100
|
|
Common
stock
|
|
3,496
|
|
|
3,837
|
|
Capital in excess of
par value
|
|
-
|
|
|
4,428
|
|
Retained
earnings
|
|
66,241
|
|
|
86,043
|
|
Accumulated other
comprehensive loss
|
|
(2,145)
|
|
|
(1,837)
|
|
Total
stockholders' equity
|
|
67,592
|
|
|
92,471
|
|
Total
liabilities and stockholders' equity
|
$
|
98,095
|
|
$
|
119,571
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/marine-products-corporation-reports-first-quarter-2017-financial-results-300445709.html
SOURCE Marine Products Corporation